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This thesis is an evaluation of the soundness of the Reagan administration's policy for transferring arms to the People Republic of China, with a sound policy defined as one in which the potential benefits outweigh the assessed risks. The evaluation begins by tracing the policy's historical development. This is followed by an investigation into the rationale behind both the United States' and China's participation in arms transfer with each other. The policy evaluation is completed with benefit, cost and risk analyses. The evaluation indicates that the Reagan administration's arms transfer policy for China is the result of an evolutionary rather than revolutionary development. It should be mutually beneficial for the US and the PRC, and is sound since its potential benefits outweigh its probable risks.

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